HomeInsideSBI report: Retail inflation may average at 4 percent in FY20

SBI report: Retail inflation may average at 4 percent in FY20

Reader's Pick

Surplus rainfall in August and September is likely to keep food and vegetable prices elevated going forward, and retail inflation may average at around 4 percent in FY20, an SBI research report said.

In October, inflation based on the Consumer Price Index (CPI) spiked to a 16-month high of 4.62 percent on costlier food items.

In 2019 five states- Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, and Karnataka bore the brunt of excess rainfall and were affected by severe floods.

The surplus rainfall during August and September seriously damaged many Kharif crops.

- Advertisement -

“Going forward, thus, food and vegetable prices could remain elevated, and inflation prints in November still may be on a higher side due to the low base in 2018. We expect FY20 CPI to now average closer at 4 percent,” SBI research report- Ecowrap said.

In the fourth bi-monthly monetary policy announced in October, RBI had projected at 3.5-3.7 percent for H2 of FY20 and 3.6 percent for the first quarter of FY21.

The report said even as food CPI will remain elevated, core CPI will go below 3 percent in this fiscal.

According to the report, RBI may cut repo rate in the upcoming December monetary policy meeting and may pause thereafter on concerns over inflation.

- Advertisement -

“We expect a December rate cut, but beyond December, it will be a close decision (as inflation prints beyond October will remain elevated). Thus, it will be better if the rate cut is front-loaded in December,” the report added.


Stay on top of Budget 2023 with our newsletter

We don’t spam! Read our privacy policy for more info.


Stay on top of Budget 2023 with our newsletter

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Read latest Business News and Startup news on TechGraph. Watch live and latest news on TechGraph TV. Follow us on Facebook or follow us on Twitter and Instagram. Listen audio news from TechGraph Briefings on Spotify, Google Podcast, Amazon Music & on Apple Podcast.

Krishna Mali
Krishna Mali
Founder & Editor of TechGraph.

Latest News

Promoted Links

Related Stories

Sino-US trade war offers Europe’s chance to bank more Chinese reserves: Analysis

Should European countries want the euro to replace the dollar as the world's do...

Japan approves 26 trillion yen as economic stimulus package to combat overseas risks

Japan's cabinet approved an economic stimulus package worth 26 trillion yen ($2...

1Win App: Review India Apk for Android and iOS

The company 1Win has been successfully operating in the markets of many countri...

Employees union seeks FIR against Jet Airways boss Naresh Goyal, Vinay Dube and on SBI Chairman

The employee union of Jet Airways, which is facing its worst crisis, Friday sou...

Samsung Electronics asks its shareholders to use electronic voting for upcoming AGM

Technology giant Samsung Electronics has adopted electronic voting for the firs...

Rahul Gandhi hits on RCEP says, ‘Make in India’ has become ‘Buy from China’

Asserting that "Make in India" has become "Buy from China," Congress leader Rah...

NASA astronauts to carry first ever all-female spacewalk on 29 March

Two NASA astronauts are scheduled to carry out the first ever all-female spacew...

Google joins Progcap $40 million funding round

Progcap, a New Delhi-based fintech platform for small and mid-size businesses (...

Ampere Electric to setup e-mobility manufacturing plant in Tamil Nadu

Electric Mobility Company Ampere Electric has announced a phased investment pot...

COVID-19: Amazon India partners with Acko General Insurance to offer free health insurance to sellers

India's leading e-commerce company Amazon India on Wednesday announced its part...